Did White House Commit Perjury About GM Bailout?

Cronyism: In recent days, the scope of the Obama White House's cronyism has become shockingly apparent. A trove of emails shows it deprived thousands of workers of their pensions to benefit unions, then lied about it.

The news site The Daily Caller has obtained internal government emails that show the U.S. Treasury Department, led by Timothy Geithner, pushed in 2009 to end the pensions of 20,000 non-union employees of GM's Delphi auto parts unit as part of the auto bailout.

What's truly outrageous is that, while those workers were cheated of their full pensions, union employees of the same Delphi company got their pensions paid.

This financially ruinous favoritism of union workers over nonunion workers is blatantly unfair, illegal and a violation of Constitutional guarantees of equal treatment under the law. And the reason is political.

By its own reckoning, organized labor spent nearly $400 million to get Obama elected in 2008, more by far than any other interest group. So it's no surprise the White House punished nonunion workers and rewarded union members when it came time to "bail out" GM.

Total value of the auto industry bailout to the unions was, by one estimate, $26 billion. For the unions, their $400 million was money well spent indeed.

What's disturbing is it now appears several White House officials may have lied about how this obvious favoritism came about. Looking at the record, Treasury and White House officials appear guilty not just of political malfeasance, but of perjury as well. On this, the Daily Caller's email cache is damning.

Matthew Feldman, a former Treasury Department official, and Ron Bloom, the White House's so-called auto czar, both sat on the Presidential Task Force on the Auto Industry in 2009.

Under oath, they testified it was the Pension Benefit Guaranty Corporation (PBGC) — the independent, quasi-governmental insurer of private pension plans — that ended the 20,000 workers' benefits. That doesn't seem to be true, as it turns out.

The email trail shows clearly that in April 2009 the Treasury Department held meetings on GM and Delphi, including "pension issues." However, the PBGC was, in the words of one official, "disinvited."

This was well before the decision, made in July, to stiff nonunion workers on their pensions. It suggests that the White House and Treasury were calling the shots — not the compromised, and politically bullied, PBGC.

This violates PBGC's independence under the law as the sole agency that can terminate a private pension — not Treasury. Worse, the PBGC, based on the emails, seems to have thought it needed to clear whatever it did with the White House and Treasury. It didn't.

As we argue in another editorial today, this crony socialism hasn't brought back the auto industry. No, it was bad for the auto industry and bad for America.

But worst of all, perhaps, it's convinced millions of Americans there's no longer a level playing field — that this hyper-politicized White House can reward its friends and punish its enemies with impunity.

We'd call for an investigation by the Justice Department, but we know where that would go: nowhere.

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